Goldman Sachs' little local difficulty

It can't be a lot of fun working for Goldman Sachs these days (unless you are still making big dollops of money, that is). A former employee has, famously, come out with a fairly spectacular rant about his old firm. Some might regard this as a sign of speaking truth to power, others might say that if this man really felt as he did, he perhaps could have quit the Wall Street giant earlier than he did. It adds to the gaiety of nations. Even the Daily Mash website has got into the act. (I love that site). And Michael Bloomberg - good businessman, not-so-great NYC Mayor - has come to Goldman's defence.

But while the Goldmans of this world, with their privileged access to central bank funds, bailouts, political pull and so on, represent that form of crony capitalism that has even normally friendly pro-market people up in arms, there are, maybe, signs that new banking businesses are being formed. Over at the Cobden Centre, Steve Baker MP has a nice piece contrasting the Goldman Sachs affair and the launch of a new bank.

In the meantime, my only caveat about all this piling on at the expense of Goldman Sachs is to point out that it is only one of a number of Western banks that have enjoyed the privileges of our quasi-statist monetary order. Goldmans may be a powerful, well connected institution, but it is hardly the only one of its kind.